The cash flows (CF_{t}) associated with an investment are listed below (assume that each cash flow occurs at the beginning of each year):
CF_{0} = -200
CF_{1} = 100
CF_{2} = 120
Should the firm undertake this project if:
a. The interest rate is 5 percent (and what is the project's NPV).
b. The interest rate is 10 percent (and what is the project's NPV).
c. What interest rate would leave the firm indifferent to the investment decision?